Is Hyperinflation Coming?

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Inflation is something we more or less take for granted these days. The idea that 5 dollars today is not going to be able to buy 5 dollars worth of stuff in the future, and the fact that you used to be able to buy a family home for 10 grand, are all the result of inflation.

The idea that over time money becomes worthless and less influences a lot of decisions in out lives. Everything from retirement planning to salary negotiations take this relatively benign and constant force into account.

But it is something that should be feared.

Hyperinflation is where this slow but steady force explodes and renders money all but useless.

Since the money printers fired up in early 2020 the US has added over three trillion dollars to is m2 money supply. That’s more than a 20% increase in the total amount of money washing around in the economy in the space of around 6 months.

What’s more is that 3 trillion dollars is coming close to doubling the amount of cash in active circulation, that is the pool of cash which is actively out there been spent on good and services rather than sitting dormant in bank accounts or term deposits.

When you consider that hyperinflation is classed as a 50% increase in general prices per month it is reasonable to expect that this printing bonanza may be starting to push into dangerous territories.

Or is it?

Is hyperinflation actually something to be concerned about, in a developed nation like the USA? Or are all of these cautionary tales simply a ploy to try and get people to buy gold coins at 50% over their base value.
Well to answer this we of course as always need to loot at a few key details and answer a few key questions.

What actually is inflation? It’s weirder than you might think

Is inflation actually good or bad for the economy?

Is the money printer causing inflation right now?

And what are the best ways to protect against this harsh reality?

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[EconomicsExplained]

Thanks as always for watching :D This video was requested by the team over on Patreon. If you want to have your say on what video is produced next please consider supporting the channel.

[darrenstettner]

High school me would never have imagined I’d one day be listening to lectures about economics for fun.

[kudamanjonjo]

As a Zimbabwean who has seen inflation, hyperinflation, deflation and then hyperinflation all in the last 12 years, this video is emotionally triggering! Lol

[quirkyork]

If reading “money printers go brrr” is funny in memes, hearing you actually say it is hysterical

[ziksy]

My economics teacher in high school used to keep saying "The government doesn't print money! It's a recipe for disaster!" But here we are.

[randomjin]

_How to know when it's just inflation and when it's a hyperinflation?_
Take some money, put it in the bag, leave the bag out there in the street.
*Just inflation:* somebody picks up the bag, takes the money, then throws the bag away
*Hyperinflation:* somebody picks up the bag, takes the bag, then throws the money away

[QuestionEverythingButWHY]

“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
― Mark Twain

[AtlantiansGaming]

The stock video of the dude wondering why he is being filmed at 1:26 was hilarious!

[CL-oyjh]

"There are three kinds of lies: lies, damned lies, and statistics." Mark Twain

[FingeringThings]

Last time I was this early housing was affordable

[economicsinaction]

**Hyperinflation is coming**

Me: "And my teacher said I'd never be a millionaire! Suck on it!"

[mikesteelheart]

When I was a little boy in the 90's my grandpa acted like if I saved a dime then I'd be a millionaire now... LOL!!!

[sertank]

“We have this crazy global economy that is based on debt and inflation.”
Also, “There are these crazy people that want to balance budgets and have a balanced monetary policy in a world of runaway inflation.”

[themongolsarecoming_]

To rephrase your question in the words of legends:
"Money printer go brrr....?"

[EconomicsExplained]

Sorry the video is a little bit late tonight guys. Hopefully it is worth the wait :)

[dudewaldo]

I feel bad for saying this but I never come away from an EE video feeling like I actually understand anything more than I did before I watched it.

[tylerinvests]

Inflation is the expansion of the money supply, and prices going up is the result of more money chasing few goods and drives up the price. So inflation is NOT prices going up, that is just the result.

[Quickonomics]

The Bureau of Labor Statistics be like: "Dont skew the CPI, spend your money like nobody's watching."

[spad]

I'm not an economist, but: When I buy something, the money goes from me to the store, and the item goes from the store to me. The goods move in the opposite direction of the money. All of the discussions I've heard about inflation seem to treat inflation as happening uniformly across the entire economy. But, the freshly printed money usually isn't distributed uniformly across the economy, but is instead dumped into specific sectors. It will eventually spread out until it's uniform across the economy. But, since goods and money move in the opposite directions, that means the goods get concentrated as the money spreads out. The end result is both a debased currency and an increased concentration of society's real wealth among those who were lucky enough to be the recipients of the new money (analogous to executives who get extra stock to make sure that their ownership isn't diluted). Inflation doesn't just devalue the currency, it also redistributes the real wealth of society to those who are favored by the man with the money printer. This is a knock-on effect that I don't think is generally discussed enough in the public conversation about inflation.

[rhwing]

9:20 You know the system is fucked when a reduction of consumption is seen as a bad thing. The foundation of the entire world economic system is based on debt financing. A sad tale.